Synergy Pharmaceuticals Inc (NASDAQ:SGYP) and Proteon Therapeutics Inc (NASDAQ:PRTO) are in the spotlight as James E. Flynn’s Deerfield Management and Peter Kolchinsky’s RA Capital Management started new stakes in them lately. According to two Schedule 13G forms filed with the SEC recently, Deerfield Management owns about 16.07 million shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s Common Stock, which account for 9.9% of its shares outstanding, while RA Capital Management holds 1.25 million shares of Proteon Therapeutics Inc (NASDAQ:PRTO)’s Common Stock, representing 8.3% of the outstanding stock.
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is a $322.3 million market cap biopharmaceutical company focused primarily on the development of drugs to treat gastrointestinal, or GI, disorders and diseases. According to the SEC filing, Deerfield Management acquired today 16.07 million shares of Common Stock, worth about $54.8 million at current stock prices.
This new position makes of Deerfield Management the largest institutional shareholder (amongst those we track) in Synergy Pharmaceuticals Inc (NASDAQ:SGYP). Other major investors betting on this company are Julian Baker And Felix Baker’s Baker Bros. Advisors and Israel Englander’s Millennium Management, which last disclosed –by the end of the second quarter- ownership of 1.75 million shares and 330,690 shares, respectively.
Proteon Therapeutics Inc (NASDAQ:PRTO) is a $146.11 million market cap early-stage biopharmaceutical company engaged in the development of elastases to treat the growing medical needs of renal and vascular disease patients. RA Capital Management recently declared the purchase of 1.25 million shares of Common Stock, just after the company’s IPO was closed.
Interestingly enough, Deerfield Management also disclosed, a few days ago, ownership of 1.25 million shares of Proteon Therapeutics Inc (NASDAQ:PRTO), which account for 8.37% of its outstanding stock. The fund had filed an Initial Statement of Beneficial Ownership of Securities just a few days earlier, declaring ownership of 535,219 shares of Series D Preferred Stock*, and 428,175 Series D Purchase Rights**. Previous to the offering, the fund held a 10% stake in the company.
Also recently, RA Capital Management initiated a stake in TG Therapeutics Inc (NASDAQ:TGTX), with more than 3.14 million shares, while Deerfield Management increased its wage on Alimera Sciences Inc (NASDAQ:ALIM) to around 2.4 million shares, or 5.58% of it common stock, up from 1.3 million shares it held previously.
* Each share of Series D Preferred Stock is convertible at any time into 0.063 shares of the company’s common stock (on an adjusted basis, after giving effect to the 1-for-15.87 reverse stock split effected by the Issuer on October 6, 2014). These shares will be automatically converted into Common Stock upon the closing of the company’s initial public offering, and have no expiration date (SEC).
** The Series D Purchase Right entitles the holder to purchase shares of Series D Convertible Preferred Stock under the Series D Preferred Stock purchase agreement at a price of $0.588656 per share. The right to purchase is not currently exercisable and shall terminate upon the completion of the company’s initial public offering.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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